27,860 reputation
237114
bio website BG.SE
location Earth
age 38
visits member for 3 years, 2 months
seen Dec 14 at 15:38

The economy is in fact over-expanded, particularly in railroad construction, and the weak link turns out to be the banking house of Jay Cooke and Company, which helped the U.S. Government finance the Civil War and also underwrote the construction of the Northern Pacific Railroad. Jay Cooke and Company, a large and respected banking house declares itself bankrupt, and announces its failure on September 18, 1873.. (The bank's collapse precipitates the "Panic of 1873" and the ensuing three yea depression during which more than 10,000 businesses fail.     The basic economic problems are overproduction, a declining market and deflation. Investors in Europe, where a depression is already underway, begin to call in American loans. The New York Stock Exchange closes its doors for 10 days; other businesses fail; and railroad construction is curtailed, with some railroads defaulting on their bonds. The unemployed begin to move about the country seeking jobs, and bread lines appear in the cities. The hard times drove numbers of laboring people and those in humble circumstances to the West and other portions of the country, to seek the rewards which the stagnation of business in the great commercial centre denied them.


27,860 Reputation

10 Feb 2 '13
15 Feb 1 '13
25 Jan 31 '13
30 Jan 30 '13
20 Jan 29 '13
20 Jan 28 '13
10 Jan 26 '13
20 Jan 25 '13
25 Jan 24 '13
40 Jan 23 '13
125 Jan 22 '13
20 Jan 21 '13
35 Jan 20 '13
45 Jan 19 '13
50 Jan 18 '13
65 Jan 17 '13
40 Jan 16 '13
170 Jan 15 '13
75 Jan 14 '13
25 Jan 13 '13
25 Jan 12 '13
83 Jan 11 '13
30 Jan 10 '13
63 Jan 9 '13
73 Jan 8 '13
10 Jan 7 '13
10 Jan 6 '13
125 Jan 4 '13
25 Jan 3 '13
40 Jan 2 '13